Seble Moges

ST.
MARY’S UNIVERSITY
FACULTY OF BUSINESS
DEPARTMENT OF MARKETING MANAGEMENT
AN ASSESSMENT OF CUSTOMER RELATIONSHIP MANAGEMENT

PRACTICE IN THE CASE OF DASHEN BANK S.C.
BY
SEBLE MOGES
JUNE, 2014
SMU
ADDIS ABABA
A SENIOR ESSAY SUBMITTED TO

THE DEPARTMENT OF MARKETING MANAGEMENT
BUSINESS FACULTY
ST. MARY’S UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE DEGREE OF BACHELOR OF ARTS IN
MARKETING MANAGEMENT
BY
SEBLE MOGES
JUNE, 2014
SMU
ADDIS ABABA
ST. MARY’S UNIVERSITY

BY
SEBLE MOGES
FACULTY OF BUSINESS
DEPARTMENT OF MARKETING MANAGEMENT
APPROVED BY THE COMMITTEE OF EXAMINERS
CHAIR PERSON SIGNATURE
ADVISOR SIGNATURE
INTERNAL EXAMINER SIGNATURE
EXTERNAL EXAMINER SIGNATURE

ACKNOWLEDGEMENT
Any endeavor of this kind could be successful only when it is

accompanied by the God will and cooperation of many individuals. First,
I would like to thank my adviser Ato Tadesse for his comments,
suggestions and guidance in the writing of this senior paper. He has
been kind enough to devote his time to follow up each section of my
paper. I feel privileged for being advised by him.
I would like to thank my deepest gratitude to Ato Alemayehu Kebede

Dashen Bank S.C. Customer Relationship Management Division for
spent his precious time in giving me necessary and enough information
to support this research work.
Last but not least, I would like to thank my family and all who support
me to completion this paper.
Thank you All!!!
i
TABLE OF CONTENT
Content Page
Acknowledgement i
Table of content ii
List of Table iv
List of Acronyms/Abbreviations v
CHAPTER ONE
1. INTRODUCTION
1.1. Background of the Study 1
1.2. Statement of the Problem 2
1.3. Research Question 3
1.4. Objective of the Study
1.4.1. General Objective 4
1.4.2. Specification Objective 4
1.5. Significance of the Study 4
1.6. Delimitation of the Study 5
1.7. Definition of Terms 5
1.8. Research Design and Methodology 5
1.8.1. Research Design 5
1.8.2. Population and Sampling Technique 6
1.8.3. Types of Data to be Collected 6
1.8.4. Method of Data Collection 6
1.8.5. Data Analysis Method 6
1.9. Limitation of the Study 7
1.10. Organization of the Paper 7
CHAPTER TWO
2. REVIEW OF RELATED LITERATURE
2.1. Overview of Customer Relationship Management
2.1.1. Definition of CRM 8
2.1.2. Importance of CRM 9
ii
2.1.3. Objective of CRM 10
2.1.4. Practice of CRM 10
2.1.5. CRM in Retail Banking 11
2.1.6. CRM Strategy Starting Points 13
2.1.7. Information Technology and CRM 15
2.1.8. Potential CRM Implementations Problems 17
2.1.9. Failure to Develop CRM System in Proper Way 18
2.1.10. Challenges of CRM Implantation 18
2.1.10.1. Potential Rewards from CRM implementation 18
2.1.11. Customers Complaint on CRM 19
2.1.11.1. Method of Customer Complaint Handling 19
2.1.12. Customer Relationship Management Solution 20
2.1.14. Qualities CRM Solution 21
2.1.15. Customer Relationship Management in Dashen Bank 21
CHAPTER THREE
3. DATA PRESENTATION ANALYSIS AND INTERPRETATIONS
3.1. General Characteristics of the Respondents 24
3.2. Analysis of the Major Findings 26
CHAPTER FOUR
4. SUMMARY, CONCLUSION AND RECOMMENDATION
4.1. Summary 37
4.2. Conclusions 39
4.3. Recommendations 41
BIBLIOGRAPHY
Appendices
Appendix A
Appendix B
Appendix C
iii
LIST OF TABLE
Title Page
Table One General Characteristics of the Respondents 24
Table Two Dashen Bank’s Employees Performance 26
Table Three Dashen Bank’s CRM System 27
Table Four Customers Complaint Handling Procedures 28
Table Five Dashen Banks CRM Practice 30
Table Six Reasons the Customers Dissatisfied with Dashen Banks 32
Customer Relationship Management Practice
Table Seven Major Problem of the Bank Customer Relationship 33
Management System
iv
TABLE OF ABBREVIATION / ACRONYMS
CRM Customer Relationship Management

ICT Information Communication Technology
DBMS Database Management System
v
CHAPTER ONE
INTRODUCTION
1.1. BACKGROUND OF THE STUDY
Customer Relationship Management is comprehensive approach for creating, maintaining and

expanding customer relationship, According to this definition, Customer Relationship
Managements is “Comprehensive” i.e. it does not belong just to a single department or section
such as sale or responsibility of the customer service group. When CRM is delegated to one area of
an organization, customer relationship will suffer. On the other side of the definition, CRM is an
approach i.e. a way of treating of dealing with customer relationships. Therefore, we can say that
CRM is a strategy because it involves a clear plan. A CRM strategy, can actually serve as a bench
mark for every other strategy in any organization. Any organizational strategy that doesn’t serve to
create, maintains, or expand relationships with the target customers doesn’t serve the organization.
(Anderson and Kerr, 2002:2)
Dashen Bank S.C is privately owned company established in 1995 as a share company in
accordance with the commercial code of Ethiopia 1960 and the licensing and supervision of
banking business proclamation number 84/1994 of Ethiopia to undertake commercial banking
activities (Bank Brochure)
The Bank gets its license from National Bank of Ethiopia on September 20, 1995 and started
business on January 1st 1996 with 10 branches. Dashen Bank comes into existence with an
authorized and subscribed capital of Birr 50,000,000. The first founders were 11 businessmen and
professionals that agree to combine their financial resources as well as their expertise. As at June
30, 2013, its paid up capital reached Birr 698,709,000. Currently Dashen Bank has 129 branches in
Addis Ababa and major up-country towns and 5 foreign exchange bureaus. The area Banks
networking is designed to facilitate the business interaction of their customer (company annual
report 2012/2013).
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Data obtained from Human Resources Management shows that as at April, 2014 the total number
of Dashen Bank employees reached 4,863.
Regarding information technology system, the Bank migrates from the previous micro Banker to
flex cube software successfully and currently Dashen Bank is the first in implementing Core
Banking using flex cube 10.5. The Bank also launches Payment Card System in the year 2006 and
now the bank has over 136 ATM machines and 780 POS terminals (Bank Brochure).
In order to cope up with international business, Dashen Bank extends its service in such area of
International Banking as opening letter of credit to importers, purchasing and selling of foreign
currencies, overdraft facilities, and cashing of international cards of VISA, Master Card and Union
Pay Cards (Bank Brochure).
Dashen Bank has been contributing to the local economy by providing domestic and international
banking services to its customer.
Dashen Bank Provides the following major service like, Saving Account, Current/Checking
Account, Time Deposit Account, Credit Service, International Banking Service and currently the
Bank has been started new serving account schemes named, Hybrid Account, Saving Plus
Account, Student Account, Modified Youth Account, Interest Plus Account, Salary Account, and
Current Account Protection Scheme. (Bank Brochure).
1.2. STATEMENT OF THE PROBLEM
Customer Relationship Management (CRM) is the process of carefully managing detail

information about individual customers and all customers “touch point” to maximize customer
loyalty. A customer touch point is any occasion on which a customers counters the brand and
product from actual experience to personal or mass communication to casual observation.
Companies often focus on CRM functionality and integration, but they forget about some of the
most basic touch points. CRM enables companies to provide excellent real time. Customers
service through the effective use of individual account information. CRM is important because a
major driver of company profitability is the aggregate value of the company’s customer base.
(Kotler and Lane, 2009:133).
2
With the help of Customer Relationship Management System, financial institutions like Banks
can track customer’s interaction and get the required information about their customers as well.
The system is ultimately helped to increase the remarkable improvement and also lead to get
closer to the customers. Through this process banking industries can maximize their ability of
enhancing further business with the existing customers as well. Information technology is the key
that successfully worked to the linked with CRM.
By realizing the significance and the contribution of CRM in the banking institutions, Dashen
Bank organized a Customer Relationship Management Division to bring a continuous change that
help maintain banking business and would be helpful to strengthen the level of confidence of the
customers.
However, lack of the required number of expertise and skill, lack of common understanding on
Customer Relationship Management concept, disintegration between Marketing and Information
Technology System, and unavailability of clearly stated Customer Relationship Management
Strategy hinder the implementation of customer Relationship management program as intended.
(From preliminary interview with Head Customer Relationship Management Division).
1.3. RESEARCH QUESTIONS
Considering the importance of Customer Relationship Management in Dashen Bank, this research
paper tried to find possible answers to the following Research Related questions:
To what extent the staffs aware about Customer Relationship Management (CRM) concept?
How the Customer Relationship Management (CRM) program of Dashen Bank supported
by Information Technology?
What is the method of customer complaint handling of the Bank?
How Customer Relationship Management (CRM) practiced in Dashen Bank?
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1.4. OBJECTIVE OF THE STUDY
1.4.1. GENERAL OBJECTIVE
Generally the main objective of the study is to investigate the implementation and practices of
CRM (Customer Relationship Management) system in Dashen Bank and to show the impact of
Customers Relationship Management in the Bank’s overall performance.
1.4.2. SPECIFIC OBJECTIVE
Moreover, the research tries to achieve the following specific objectives in relation to the
application of Customer Relationship Management.
− To investigate the awareness of the staff about the concept of Customer Relationship
Management (CRM)
− To identify the Customer Relationship Management (CRM) program of Dashen Bank
supported by Information Technology.
− To investigate Dashen Bank’s customer complaint handling method.
− To evaluate Customer Relationship Management (CRM) practiced in Dashen Bank.
1.5. SIGNIFICANCE OF THE STUDY
This research believes to have potential benefit to the Bank, the customer and the researcher. The
Bank benefit from the research by considering the raise issues and recommendations as an input.
On the other hand, customers can benefit from improve customer relationship. Finally the
researcher, by conducting this research benefit in applying theoretical knowledge into practice.
• To the Bank
- The Bank can use the findings as an input to the study under the same topic.
- It helps to identify the gap between the actual Customer Relationship Management
practice and the expected Customer Relationship Management implementation
• To the Customer
- Improve Customer relations system
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• To the Student Researcher
- The research helps the researcher benefited from this research by applying theoretical
knowledge in practice.
• To other Researcher
- The importance of this study to other researchers is it helps as a secondary source for
further research on this area.
1.6. DELIMITATION OF THE STUDY
To make the study manageable, the student researcher delimits the topic of the study only on
Customer Relationship Management practice in the case of Dashen Bank S.C, and the study focus
on refer January 2011 – April 2014, and the customers who uses the Bank at least three times.
Therefore, the findings and recommendation will be applicable only to the stated Bank.
1.7. DEFINITION OF TERMS
Customer Relationship Management: It is the process of building and maintains profitable

customers relationship by delivering superior customers value and satisfaction. It deals with all
aspects of acquiring, keeping and growing customers.
1.8. RESEARCH DESIGN AND METHODOLOGY

1.8.1. Research Design
The study adopted a descriptive type of research to address different research question which
helped the researcher to describe and determine the performance of Dashen Bank S.C. on the
problem of Customer Relationship Management.
5
1.8.2. Population and Sampling Technique
The student researcher used non probability sampling; especially convenience sampling technique
to select respondent customers because the student researcher did not have an access to the entire
group of population. Therefore, according to Malhotra (2006:339) the student researcher used a
sample of 200 people who are ordinary customers and do not have a listed name and specific
identification code.
1.8.3. Types of Data Collected

To get useful and enough information for the research study, the student researcher collected both
primary and secondary data. The primary data were collected from Customer Relationship
Management Division Head, and customer of the Bank. Moreover, company profile, annual report
and other published and non-published documents were assessed to get secondary data.
1.8.4. Method of Data Collection
To gather data from primary sources the student researcher used the following data collection tools:
Standardize questionnaire were used for gathering information from the sample customers and
interview also conducted to gather information from Head Customer Relationship Management
Division and customer relations experts.
1.8.5. Data analysis Method
The quantitative data that were collected through questionnaires were analyzed through frequency,
and percentage. However, the data were collected through interview and open ended question in the
questionnaire were narrated qualitatively.
6
1.9. LIMITATION OF THE STUDY
All studies how they are prepared with high consideration, limitation do exit. There are some
limitations related with this particular study. The following limitations are observed
- Some customers were unwilling to provide necessary information

- Late response from customers to reply for the questionnaire.
- Shortage of reference books
1.10. ORGANIZATION OF THE STUDY
The final report of the research organized in four chapters. The first chapter includes introduction
parts and it contains background of the study, statement of the problem, research questions,
objective of the study, significance of the study, delimitation of the study, definition of terms,
research design and methodology and limitation of the study. The second chapter consist review of
related literature. The third chapter deals with the data collection, organization, analysis and
interpretation. The fourth chapter contains summary of findings, conclusion and recommendation.
Finally the bibliography, interview checklist and samples of questionnaire are attached to the
research paper.
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CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1. AN OVERVIEW OF CUSOMTER RELATIONSHIP MANGMENT
2.1.1 DEFINITION OF CUSTOMER RELATIONSHIP MANAGEMENT
Customer Relationship Management (CRM) is the overall process of building and maintains
profitable customers relationship by delivering superior customers value and satisfaction. It deals
with all aspects of acquiring, keeping and growing customers. Customer Relationship
Management (CRM) in fact signifies the whole process by which relationship with the customer
and build and maintain. (Kotler and Armstrong, 2006:13).
One major development within business practice is the increasing interest in Customer
Relationship Management in recent years. Customer Relationship Management (CRM) thereby
focuses on establishing and maintaining profitable relationships with the customer using modern
information technology (IT) and has emerged as a major research field in business and
information systems engineering. (Gneiser 2010:52)
Customer Relationship Management (CRM) was invented because customers differ in their
preferences and purchasing habits. According to him, if all customers were alike, there will be no
need for CRM. Consequently, by understanding customer drivers and customer profitability,
firms can better tailor their marketing offerings to maximize the overall value of their customer
portfolio (Balaji, 2002:54)
There are a number of working definitions for CRM. In fact the letter CRM have been used to
identify Continuous Relationship Marketing, Customer Relationship Marketing and Customer
Relationship Management. Each term represent the same process. CRM can be defined as a
process that maximize customer value through on-going marketing activity founded on intimate
customer knowledge established through collect, management and leverage of customer
information and contact history. CRM is about perfecting relationship to maximize a customer’s
value over time. (Preeti, 2002:165)
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2.1.2. IMPORTANCE OF CUSTOMER RELATIONSHIP MANAGEMENT
Customer Relationship Management (CRM) can improve a company’s customer service

practices, helping employees respond to clients’ queries quickly and effectively. (Poulsen,
2011:85)
According to Harell and Frazier (1999:67) Customer Relationship Management (CRM) increased
customer retention and loyalty: the customer retention increases since customers stay longer, buy
more and buy more frequently. The customer does also often take initiatives which increase the
bonding relationship and as a result the customer loyalty increases as well.
Customer Relationship Management (CRM) aids the building of positive relationships among
employees and with customers service (Kwamena, 2013: 156).
Another main issue that rises with Customer Relationship Management (CRM) is customer’s data
base. And, it is vital that banks ensure their customer data secured from both internal and external
threats. This is because for one of the following reasons. (Buttle, 200:341)
• If banks lose their customer’s information, it invariably loses the customer as well,
• A security breach has an immense negative impact on the value of bank’s brand and
reputation, hindering the bank’s ability to acquire new customers,
• Bank’s without customer’s data security as a part of their risk management program must
maintain higher level of capital reserve.
According to Manga and Anand (2003:251) the following are best attribution of Customer
Relationship Management (CRM) system which reflects business results financial service
companies must obtain by implementing their CRM solutions.
• Increasing acquisition of new customers

• Improving relation with existing customers
• Increasing the profitability of customers relationships
• Improving distribution and channel management
• Maximizing the value of past Customer Relationship Management (CRM) investments
9
In general, the market dynamics facing financial service companies have been more challenging
and complex. Any Customer Relationship Management (CRM) solution invested in must be
implemented with the clear goals of improving:-
- Customer satisfaction and loyalty

- Customer insight
- Speed-to-market for products and services
- Customer security
All this must be done in a manner that generates measurable increases in revenue for the Bank and
reduces overall costs of service.
2.1.3. OBJECTIVES OF CUSTOMER RELATIONSHIP MANAGEMENT
Kotler, Saunders and Armstrong (2005:403) defined Customer Relationship Management (CRM)
as consisting of sophisticated software and analytical tools that integrate customer information from
all sources, analyze it in depth, and apply the results to build stronger customer relationship.
According to them, Customer Relationship Management (CRM) integrates everything that a
company’s sales service and marketing teams know about individual customers to provide a 360-
degree view of the customer relationship.
2.1.4. PRACTICES OF CUSTOMER RELATIONSHIP MANAGEMENT
Customer Relationship Management (CRM) builds on the philosophy of relationship marketing that
aims to create, develop and enhance relationships with carefully targeted customers to maximize
customer value, corporate profitability and thus shareholders value. The goal is to improve
customers’ experience of how they interact with the company, which hopefully will turn into more
satisfaction, increased customer loyalty and a long-run increase in profitability. The technology
dimension of CRM which has often been used as the main distinguishing feature between CRM and
RM serves only as an enabler thus making the distinction between CRM and RM hazy, nebulous
and imperceptible especially when the ‘customer’ is used in the strict sense as the final beneficiary
of the firm’s output. Equally noteworthy is the fact that RM in the strict sense of its effective
contemporary practice cannot dispense with technology or technology solutions. (Richard,
2004:320)
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Customer Relationship Management (CRM) derives its roots from relationship marketing which
is aimed at improving long run profitability by shifting from transaction based marketing, with its
emphasis on winning new customers, to customer retention through effective management of
customer relationships (Christopher, Payen, & Ballantyne, 1991:42).
2.1.5. CUSTOMER RELATIONSHIP MANAGEMENT IN RETAIL BANKING
Today, many businesses such as banks, insurance companies, and other service providers realize
the importance of customer relationship management and its potential to help them acquire new
customers retain existing ones and maximize their lifetime value. Hence it is evident that close
relationship with customers will require strong coordination between IT and marketing
departments to provide a long term relation of customers.
According to Poulos (2006:118) Customer Relationship Management (CRM) is a sound business

strategy to identify the banks most customers, prospects, devotes time and attention to expending
account relationships with those customers through individualized marketing, reprising,
discretionary decision making and customized service all delivered through the various sales
channels that the bank uses.
Banks, while implementing Customer Relationship Management (CRM) strategy the focused on
the evaluation of the critical satisfaction dimensions and the determination of customer groups
with distinctive preferences and expectations in the private banks sector. However
(Camarata,1998) have noted that managing relationships with their customers, especially with
employees, channel partners and strategic alliances was critical to the firm’s long term success. It
was also emphasized that customer relationship management based on social exchange and equity
significantly assist the firm in developing collaborative cooperative and profitable long term
relationships.
The idea of Customer Relationship Management (CRM) is that it helps business use technology
and human resources gain insight in to the behavior of customers and the value of those
customers.
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If it works as it intends the business can:-
• Providing better customer service

• Make all centers more efficient
• Cross sell products more effectively
• Help staff close deals faster
• Simplify marketing and sales processes
• Discover new customers and
• Increase customer revenues
For Customer Relationship Management (CRM) to be effective an organization must first decide
what kind of customer information is looking for and it must decide what it intends to do with that
information. Next the organization must look into all of the different ways of information about
customers comes to a business, where and how this data is stored and how it is currently used.
According to Balaji (2007:26), retail banks are facing challenges in executing their customer
management strategies. Intensifying competition, proliferating customer expectations and
capitalizing on new market opportunities are at the top many bank’s issues.
In looking for ways of growth, banks need to evaluate their customer management strategy.
Obviously they have to analyze weather they do have Customer Relationship Management
(CRM) solution or not that is capable of delivering:-
• Consistent and cost effective service

• Customer aligned services.
• Enhanced customer loyalty and long-term value
Today, more than ever before, the ability to maximize customer loyalty through close and durable
relationships is critical to retail banks’ ability to grow their businesses. As banks strive to create
and manage customer relationships, several emerging trends affect the approach and tools banks
employ to achieve sustainable growth.
These trends reflect a fundamental change in the way banks interact with the customers they have
and they want to acquire.
12
To build stronger customer loyalty, banks need improved customer knowledge to develop
products and deliver services targeted at specify market segments resulting in more directed
marketing, sales and service tactics.
Customer loyalty can build through a consistent customer experience i.e. understanding each
individual customer’s needs and preferences. One of the largest challenge banks faces is how to
better understand their customers and provide personalized customer service.
To optimize customer relationship and loyalty, banks need to integrate processes and technologies
that enable them to build and act up on a detailed view of what each customer wants. This in turn
will require highly skilled customer service professionals with the right combination of linguistic,
culturally aligned and financial service skills, as well as the ability to deploy customer service
strategies quickly, efficiently and cost effectively.
2.1.6. CUSTOMER RELATIONSHIP MANAGEMENT STRATEGY STARTING

POINTS
In the ideal world, every organization would have clearly defined Customer Relationship
Management (CRM) strategy (Anderson and Kerr 2009:123). After all; effectively satisfying
customers in the foundation of any organizational success if the organization has not such a CRM
strategy it should be necessarily to analyze. On the other hand the issue lacks a Customer
Relationship Management (CRM) may take by the information Technology group or by
marketing of sales group.
For such organization that don’t have Customer Relationship Management (CRM) strategy they
do have two alternatives,
• One, Creating a CRM Strategy for the overall organization; or

• Two, Creating a CRM strategy for a specific department
Accordingly, if the organization chooses the second alternative, i.e. creating Customer
Relationship Management (CRM) strategy for specific department in the absence of
companywide CRM Strategy, the organization need to take care to companywide Customer
Relationship Management (CRM) strategy supports broad business goals and the efforts of other
departments and the efforts of other departments and functions.
13
For such organization the following are basic procedures to develop a Customer Relationship
Management (CRM) strategy that is compatible with the overall organizational goals and
strategies:-
1. Picking the Players:

• Choose the strategy development team. Here it is better to look for individuals from whom:
• represent front- line customer contact, back of the house support and management
• Understand customer and what is important to them
• Understand the largest business goals and visions or are willing to learn about them
• Are able to employ time and energy to this process
According to Anderson and Karr (2002:10) of CRM, it is noted here that the Customer
Relationship Management (CRM) team members have not necessarily to understand CRM tools.
2. Preparing for First Meeting

• If formal data and information about what your customers what and how they experience
is scarce, you may conduct few customer focus groups or interview a number of key
customers focus groups of interview a number of key customers before creating a CRM
strategy
3. CRM Strategy Certain Meetings

• open a meeting with an overview of the information gathered and review the final goal for
your work together
4. Identify Potential Strategies

• Collect clues about what’s important to managing customer relationships (use silent brain
storming for this)
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2.1.7. INFORMATION TECHNOLOGY AND CUSTOMER RELATIONSHIP
MANAGEMENT
Marketers have always recognized the importance of customer information. The data warehouse
is the central element in the Customer Relationship Management (CRM) system. Data sources are
both inside and outside the firm, provide data that describes relationships with customers. A data
gathering system covers this incoming data to an electronic medium if it is not already in the
format. The data warehouse system prepares that data for storage, stores that data so that might
later be retired, and performs a management and control function. An information delivery system
makes the data warehouse available to the information and presenting the information to users.
The system therefore transforms data into information to users (Watson, 2010:200)
Data Sources
The main categories of data sources are internal and external. Internal exits within the firm in the
form of the various business units. The External source consists of customer supplies, the
government and even competitors.
Data Acquisition
The data that is gathered from internal sources is most likely already in a computer – readable
format and is entered into the data warehouse as activities in the business units are performed.
A Basic CRM Model
Data Data Data Information Information

Sources Were delivery users
Gathering house system
System system
Fig. 1.A Basic CRM Model
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Data Storage
The data warehouse system consists of the stored data, software that maintains the data in up-to-
date condition and software that manages and controls the warehouse. As managers sought to use
the stored data in problem solving and decision making difficulties in integrating the contents of
several files triggered innovations in how the data was stored. A database is and accumulation of
computer based data that is arranged in formats to facilitate retrieval. A database is a corporate
resource and a firm can have more than one
An extension of the database concept is the data warehouse. The task of the data base is to
provide detailed data on those entities that are important to the firm’s meeting its objectives.
Entities such as products, customers, employees and money and not to provide a detailed audit
trail or everything the firm has. The data warehouse supports the entire firm.
Data Management
The first firms that sought to create databases of their activities encountered two roadblocks. First
is the tremendous workload of entering the vast quantities to data.
The second is keeping the data current adding, deleting and changing records as needed. The
software that maintains the data and makes it available for use is called a Database Management
System (DBMS). Most of the organizations information systems make use of the database.
Information Delivery
CRM users typically obtain information by querying the data warehouse. The query responds are
displayed on the user’s workstation. The users make one query after another, refining the queries
each time until they are satisfied with the responses.
Information Users
Interest in customer relationship management spans the entire organization and CRM system
users can be found at all organizational levels, from the president to sales clerks. Executives can
use the system in formulating corporate strategies involving the organizations customers. The
profiles help the clerks tailor products and services to the customers. The profiles help the clerks
tailor products and services to the customers’ needs.
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The Customer Relationship Management (CRM) user interface is designed to facilitate navigation
through the data and to enable the users to make queries easily. Web interfaces enable users to
communicate with the Customer Relationship Management (CRM) system by means of the
internet.
2.1.8. Potential CRM Implementations Problems

With most other types of information systems we are concerned mainly with operations relevant
to the organization’s internal resources. By contrast, introducing a Customer Relationship
Management (CRM) system affects the company’s customers, who are external to the
organization and beyond its control. The company’s reputation and future are greatly dependent
on the success of the Customer Relationship Management (CRM) implementation. Failure in the
introduction of the Customer Relationship Management (CRM) system, especially in service and
sales phone centers, can result in real disaster for the organization. The present article focuses on
issues that must be addressed in order to ensure that a new CRM system is introduced in the
organization in the best possible way, generating maximum return on investment, without
affecting current activity, and with minimal risk. (Kumar and Meenakshi 2006:20)
Implementation of Customer Relationship Management (CRM) system can follow the same
general systems development life cycle that is followed for information systems of all types .Both
management and the developers contribute to that failure to provide the proper focus for both the
project and the CRM system. (Sah,2007:33)
According to King (2008:424 ) Customer Relationship Management (CRM) failure is derived

from the following
• Management and the developers do not have a clear understanding or definition of the
components or propose of CRM system
• Management and the developers define the project scope too large
• Management fails to commit an executive sponsor or champion to the project.
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2.1.9. Failure to Develop the System in the Proper Way
In a similar fashion, both management and the developers contribute to errors made in developing
the system once the project gets underway. These errors make the following form:
• the developers lack the required technical knowledge and skills

• The developers fail to define all of the risks
• The developers fail to recognize the importance of quality
• Management and the developers fail to perform a post implementation evaluation
All of those problems can be avoided by following proven system development
methodology in the prescribed way that is based upon a sound understanding of customer
expectations and the objectives of the finished product
2.1.10. CHALLENGES OF CUSTOMER RELATIONSHIP MANAGEMENT

IMPLEMENTATION
According to Buttle (2009:14) Successful development, implementation, use and support of

Customer Relationship Management systems can provide a significant advantage to the user, but
often there are obstacles that obstruct the user from using the system to its full potential.
According to Mudle and Pirrie (2006:39) a phased implementation process with careful planning
may minimize many of the nightmares of adopting Customer Relationship Management (CRM)
system; but the road to implementation will include barriers and problems. Three challenges that
have been stressed in different ways include expectations, investment, and reactions to change.
2.1.10.1. Potential Rewards from CRM Implementation
According to Srinivasan and Moorman (2005:196 ) CRM system is designed, the organization
may experience several unexpected benefit.
Among the critical inputs is the organizations knowledge of customer behavior, particular with
respect to market segmentation, brand commitment, customer loyalty, and employee
commitments. This critical knowledge about the customer landscape is gained through the
application of sophisticated market research and analytic Customer Relationship Management.
18
This process input knowledge shapes the firm’s Customer Relationship Management (CRM)
vision/strategy, which is then implemented through people, process and technology. The process
output pertains to the value created for the organization’s key stakeholders including customers,
employees, owners and the community.
Despite the fears of the problems with CRM systems, the bottom line for the future success of any
organization may well by its ability to manage people with in an electronic market place that
complement or replaces traditional approaches of conducting business. If implemented correctly,
the Customer Relationship Management (CRM) system may well help the organization continue
to learn to adapt and change within a dynamic environment
2.1.11. CUSTOMERS COMPLAINT ON CUSTOMER RELATIONSHIP MANAGEMENT
According to Zeithaml and Bitner (2003:99) Customers expect outcomes, or compensation, that
matches the level of their dissatisfaction. This compensation can take the form of actual monetary
compensation, and apology, future free service, reduced charges, repairs, and /or replacements.
Customers want to feel that the company has “paid” for its mistakes in a manner at lost equal to
what they have suffered. In addition to fair compensation, customers expect fairness in terms of
policies, rules and timeliness of the complaint process. They want easy access to the compliant
process, and they want things handled quickly, preferably by the first person they contact So that
the recovery effort can match their individual.
Beyond all their expectations of fair compensation and hassle free, quick procedures, customers
expect to be treated politely, with care and honestly. This form of fairness can dominate the others
if customers feel the company and its employees have uncaring attitudes and have done little try to
resolve the problem.
2.1.11.1. Method Of Customer Complaint Handling
According to Lovelock and Wirtz (2005:405) consumer complaining behaviors have identified four
main purposes for complaining:
1. Obtain restitution or compensation. Often, consumers complain to recover some economic loss
by seeking a refund, compensation, and/or have the service performed again.
19
2. Vent their anger. Some customers complain to rebuild self-esteem and/or vent their anger and
frustration. When service processes are bureaucratic and unreasonable or when employees are
rued, deliberately intimidating, or apparently uncaring, the customers self-worth, or sense of
fairness can be negatively affected. They may become angry and emotional.
3. Help to improve the service. When customers are highly involved with a service (e.g. at a
college, an alumni association, or their main banking connection), they give feedback to try
and contribute toward service improvements. These customers are motivated by the prospect of
getting better service in the future.
4. For altruistic reasons. Finally, some customers are motivated by altruistic reasons. They want
to spare other customers from experiencing the same problems, and they might feel bad if a
problem is not highlighted.
2.1.12. CUSTOMER RELATIONSHIP MANAGEMENT SOLUTION

As we have stated earlier any CRM solution helps improve customer satisfaction, maximize
customer value and optimize profitability. Banks accomplish this by integrating the right people,
process and technologies in each of their offerings.
The following are major Customer Relationship Management (CRM) solutions to achieve this
(Anderson and Kerr,2005:122)
1. contact center management service:

Improve management through enterprise routing, desktop automations, workforce
optimizations quality management, automated training and knowledge management.
2. Contact Center outsourcing Services

Services like technical product Support, customer care, sales and marketing and employee care.
3. Customer intelligence services

Embodies the people process and technologies required to analyze customer interaction
enhance the customer experience and improve operations performance.
4. Customer self- Service delivers outstanding customer experience through speech recognition
multimodal deices web and kiosks.
20
2.1.13. QUALITIES OF CUSTOMER RELATIONSHIP MANAGEMENT SOLUTION
Best CRM solution needs to embody six core qualities in order to support a company’s ability to
acquire new customers, increase retention. A Customer Relationship Management (CRM)
solution must be (Denton 2007:78)
• Agile in its deployment: to allow new products and services to be implemented by the
bank in a creative and rapid manner as required over time
• Consistent in its execution of customer processes : To ensure process, technology and
managements deliver a consistent customer treatment strategy across all channels in the
enterprise plat form
• Scalable in its design and capacity: to allow for the bank’s future growth whether through
improved organic strategies or acquisition.
• Effective in its integration of business intelligence: to provide clear insights into customer
preferences by integrating business intelligence and applying into support products
development and customer treatment strategies.
• Measurable in its results: to allow reporting of operational strategic and customer service
goals to measure if programs are achieving real ROI for the bank.
• Secure in its handling of customer information: to ensure absolute security and privacy
around all information held and transmitted through the system
2.1.14. CUSTOMER RELATIONSHIP MANAGEMENT IN DASHEN BANK
In order to strengthen its relationship with customers, Dashen Bank has created a system that
helps the bank to reach its customers through Customer Relations Division. The Customer
Relations Division which is responsible to different activities that relates directly to the
relationship of the Bank and its customers. The division maintains customers’ data base in
computerized and centralized way. The division accepts its customers’ complaints through its web
site, suggestion box, telephone and other convenient means. It forwards the necessary information
pertinent to Customer Relationship Management.
21
Organizational
nal Structure of CRM in Dashen Bank
B
President
Corporate Planning and

Development Department
Market
Research and Organization Business Customer
Planning and Methods Promotion Relations
Dvision Division Division Division
Fig.1.. Organizational structure of CRM in Dashen Bank s.c.( a partial organizational structure of Dashen Bank s.c.)
Source: Dashen Bank S.C. Special issued magazine 2008
22
CHAPTER THREE
DATA PRESENTATIONS, ANALYSIS AND INTERPRETATIONS

This chapter deals with the presentation, analysis and interpretation of the gathered data from
Dashen Bank S.C. customers at Head Office. The research tried to investigate the Customer
Relationship Management practice of Dashen Bank S.C. from customer point of view.
In order to get primary data, 200 questionnaires were prepared and distributed for customers. Out
of the total number of questionnaires distributed to customer only 181 (One Hundred Eighty One)
were filled and returned. This means 91% of customers have filled and returned the questionnaires.
So, the analysis is done based on these valid responses using descriptive analysis method.
Accordingly, the raw data were computed in percentage and presented in tabularized form followed
by detail explanation and critical interpretation of the data that is made to show implication of the
major findings.
23
3.1. GENERAL CHARACTERISTICS OF RESPONDENTS
Table 1 below describes the demographic characteristics of respondents including Sex, Age,
Educational Background, Relationship with the Bank and type of service the customers use.
Table 1 General Characteristics of Respondents
Customer Respondent
S.N. Item
Frequency Percentage (%)
Sex
A. Male 109 60.22
1
B. Female 72 39.78
Total 181 100
Age
A. 18 - 30 years 42 23.21
B. 31 - 43 years 62 34.25
2
C. 44 - 56 years 46 25.41
D. > 56 years 31 17.13
Total 181 100
Educational Back Ground
A. Secondary Education 26 14.36
B. Certificate 29 16.03
3 C. Diploma 62 34.25
D. Degree 48 26.52
E. Master and Above 16 8.84
Total 181 100
Relation with the Company
A. < 1 year 24 13.26
B. 1 - 3 years 58 32.04
4
C. 4 - 6 years 43 23.75
D. > 6 years 56 30.95
Total 181 100
Which Service do you use from Dashen Bank?
A. International Banking Service 21 11.61
B. Hawala /Local Money Transfer/ 30 16.57
5
C. Current Account 62 34.25
D. Saving Account 56 30.95
E. Others 12 6.62
Total 181 100
Source (Questionnaire)
24
As table 1 presented gender composition in item 1, 109 (60.22%) of the respondent were male and 72
(39.78%) of them were female. Male respondents dominate over female respondents. This implies that
most of the customers of Dashen Bank S.C. are male.
In relation to age category as shown in item 2 of the same table the number of respondent in age
category of from 18 -30 were 42 (23.21%), in the next category from 31- 43 were 62 (34.25%), in age
44 – 56 were 46 (25.41%), and above 56 were 31 (17.13%). Therefore findings from age profile of the
respondents indicate that majority of respondent age 34.25% were lie between 31 – 43. Thus, it’s
possible to say that Dashen Bank is highly demanded by the matured group.
Item 3 in the above table 1 explain the educational background of the respondents. Accordingly out of
the total customer respondents 26 (14.36%) of the respondent completed their Secondary Education,
29 (16.03%) of respondents were graduated with Certificate, 62 (34.25) of the respondent graduated
with Diploma, 48 (26.52%) of the respondent graduated with Degree and the remaining 16 (8.84%) of
the respondent have Master and above. As we can see from the above data most customers are Diploma
holders. As the result the customers can evaluate Dashen Bank service from different perspectives.
As it can be seen in item 4 of the above table concerning the customers duration of relation with the
Bank 24 (13.26%) of them stayed for less than 1 year, 58 (32.04%) stayed from 1 – 3 years, 43
(23.75%) stayed from 4-6 years, and 56 (30.95%) stayed above 6 years in business relationship. This
implies most of the respondents 32.04% stayed in relationship with Dashen Bank service for1 – 3 years.
So the findings shows that the Bank need to improve its service to maintaining loyal customers.
Respondents were also requested to show which service they often use. Accordingly, out of the total
number of respondents 21 (11.60 %) of the respondent were International Banking Service users, 30
(16.57%) of respondents were Hawala /Local Money Transfer/ users, 62 (34.25%) of the respondent
were Current Account users, 56 (30.95%) of the respondent were the users of Saving Account. The rest
12 (6.63%) respondents stated they are users of other services than the stated ones.
25
3.2. ANALYSIS OF THE MAJOR FINDINGS
In this section those questions which have direct impact on the research question were presented and
analysis is done accordingly.
Table 2. Dashen Bank Employees Performance
S.N. Item Customer Respondent

How do you evaluate the knowledge of the staff on
Customer Relationship Management?
A. Very Good 28 15.47
B. Good 35 19.34
1 C. Medium 46 25.41
D. Bad 49 27.07
E. Very Bad 23 12.71
Total 181 100
How do you evaluate your satisfaction with the way the
employees handle your problem?
A. Very High Level 21 11.60
B. High Level 29 16.02
2
C. Moderate 47 25.97
D. Low 57 31.49
E. Very Low level 27 14.92
Total 181 100
Table 2 presented knowledge of the staff with regard to CRM. In item1, 28 (15.47%) of the respond said
Very Good, 35 (19.34%) of the respondents said good, 46 (25.41%) of the respondent said medium, 49
(27.07%) of respondents said Bad and 23 (12.71%) of respondents said Very bad. This implies that
majority of the respondent (27.07%) said Dashen Bank employees have lack of the necessary knowledge
about CRM.
As it can be seen in item 2 of the above table concerning the level of customers’ satisfaction with the way
the employees handle their problem. 21 (11.60%) of the respondents said they are satisfied to a very high
level, 29 (16.02%) of responds said they satisfied to high level, 47 (25.97%) of respondents said that they
are moderately satisfied, 57 (31.49%) of respondents said their satisfaction is to a low level and 27
(14.92%) of responds said to a very lower level. Consequently, most of the respondents i.e. 57 (31.49%)
satisfied a low level in accordance with the employees handle their problem. This implies that Dashen
Bank S.C. needs to improve its customer problem handling procedure in order to satisfy its customers.
26
Table 3 Dashen Bank Customers Relationship Management System
Customer Respondent
S.N. Item
Do you think the Bank need to improve its Customer
Relationship Management?
A. Yes 110 60.77
1 B. No 31 17.13
C. I am not Sure 40 22.10
Total 181 100
If your answer is "Yes" which area will be improved? 110 100.00
A. The Bank customer handling procedure 45 40.91
B. The service the Bank deliver 39 35.45
*2 C. The Bank database system 60 54.54
D. The Bank complaint handling system 65 59.10
E. Others 7 6.36
Total 216 100
How do you rate Dashen Bank's Database System?
B. Good 35 19.34
3 C. Medium 40 22.10
D. Bad 65 35.91
Total 181 100
*Table 3 in item 2 it is multiple response question
As shown table 3 in item 1 respondents thought about Customer Relationship Management of Dashen
Bank S.C. need to be improved or not. 110 (60.77%) of respondent said Yes, 31 (17.13%) of respondents
said No and 40 (22.10%) of the respond said I am not sure. This implies that majority of the respondent
110 (60.77%) agree that the Bank need to improve its Customer Relationship Management.
As it can be seen in item 2 table 3 it is multiple response has been obtained and concerning the
respondents response those said the Bank need to improvement its Customer Relationship Management
System. 45 (20.85%) the respondent said the bank customer handling procedure need to be improved, 39
(18.05%) the respondent said the way the Bank delivered its service need to be improved, 60 (27.77%)
said it need improve its database system, 65 (30.09%) said the Bank need to improve its compliant
handling system and the rest 7 (3.24%) said others. This implies that the Bank need to improve its
compliant handling system and the way the bank keeps its customers database systems respectively.
27
As it is depleted in item3 table 3 above concerning Dashen Bank S.C. Database System 22 (12.15%)
customers rated as very good, 35 (19.34%) rated as good, 40 (22.10%) rated as medium, 65 (35.91%)
were rated as bad and 19 (10.45%) rated as very bad. This indicates that, Dashen Bank S.C. Database
Management System needs improvement.
Table 4. Customers Compliant Handling Procedures

Customer Respondent
S.N Item Frequency Percentage (%)
How do you rate the encouragement of Dashen Bank customers to complain?
1 C. Moderate 30 16.57
D. Low 77 20.44
Total 181 100
To whom you present your complaints?
A. To the Area Bank Manager 60 33.15
2 B. To the Customer Relationship Management Division 41 22.65
C. To the Bank Supervisors 80 44.20
Total 181 100
If your answer is "To the Customer Relationship Management Division".
How do you present your Complaint? 41 100.00
A. Personally 12 16.90
B. Through Post Office 6 8.45
*3
C. Through Telephone 16 22.54
D. Through Suggestion Box 28 39.44
E. Through E-mail 7 9.86
F. Others 2 2.81
Total 71 100
To what extent are you satisfied with the complaints handling procedures?
D. Low 60 33.15
Total 181 100
How do you rate the speed of the Bank to answer customers complain?
A. Very Fast 19 10.50
B. Fast 28 15.47
D. Slow 49 27.07
E. Very Slow 40 22.10
Total 181 100
28
*Table 4 in item 3 it is multiple response question
Item 1 table 4 gives details the extents of the Bank encourage its customers to present complain. 15
(8.28%) of respondents said Very high level, 27 (14.92%) of respondents said High level, 30 (16.57%)
of the respondent said Moderate, 77 (20.44%) of the respondent said Low level and 32 (17.68%) of the
respondent said very low level the Bank encourage its customer to forward their complaint. This
implies that the Bank doesn’t encourage its customers to present complain. This can be the reason that
the customers go to other Bank
Item 2 in the above table 4 it present to whom the customers present their complaint. Accordingly out
of the total customer respondents 60 (33.15%) they presented their complaint for area Bank Manager,
41 (22.65%) of the respondent presented their complaint to Customer Relationship Management
Division, and 80 (44.20%) of the respondent present their compliant to the area Bank Manager. This
indicates the majority for the respondent present their compliant to the Area Bank Supervisors.
In relation to the customers present their compliant as shown in item 3 of the same table it is multiple
response type questions and in relation to the number of respondent who present personally were 12
(16.90%), who present through Post Office were 6 (8.45%) through Telephone were 16 (22.54%),
through Suggestion Box were 28 (39.44%), through E-mail were 7 (9.86) and the rest were 2 (2.81%)
respondents are through others. Therefore findings from respondents indicate that majority of the
customer respondent present their complaint through Suggestion Box and through Telephone
respectively.
As table 4 in item 4 the satisfaction level of the customers by the Bank compliant handling procedure,
20 (11.05%) of the respondent were very high satisfied, 32 (17.68%) of them were satisfied high level,
44 (24.31%) of the respondents were satisfied moderately, 60 (33.15%) of them were low level
satisfied and 25 (13.81%) of the respondent were very low level satisfied. This implies that most of the
customers of Dashen Bank S.C. are relatively low level of satisfaction with the Bank compliant
handling procedure.
As it can be seen in item 5 table 4 concerning respondents response on rating the speed of the Bank to
answer customers complain. 19 (10.50%) of the respondents response were very fast, 28 (15.47%) of
the respondents response were fast, 45 (24.86%) of the respondents response were moderate, 49
(27.07%) of the respondents response were slow and 40 (22.10%) of the respondents response were
very slow. Thus, it’s possible to say that Dashen Bank doesn’t give express response whenever
customers presented their complaints. So this is, one of the factor that makes customers dissatisfaction.
29
Table 5 Dashen Bank Customer Relationship Management Practice
Customer Respondent
S.N. Item
How do you evaluate your understanding about

Customer Relationship Management?
1 B. Good 68 37.58
C. Medium 36 19.89
D. Bad 18 9.94
E. Very Bad 9 4.97
Total 181 100
Do you think Customer Relationship Management
practice give better solution for customers?
A. Yes 157 86.74
2
B. No 15 8.29
Total 181 100
How do you see the relationship between the Bank and
its customers?
B. Good 40 22.10
3
C. Medium 58 32.05
D. Bad 42 23.20
Total 181 100
Do you think that Dashen Bank has Customer
Relationship Management System?
4 A. Yes 94 51.94
B. No 50 27.62
Total 181 100
30
Table 5 above describes the understanding level of customers on Customer Relationship
Management concept, the relationship between the Bank and its customer, the satisfaction level of
the customers on the subject of Customer Relationship Management practice of the Bank.
As it can be seen in item 1 table 5 concerning of understanding level of Customer Relationship

Management of the customer. 50 (27.62%) said very good, 68 (37.58%) said Good, 36 (19.89%)
said medium, 18 (9.94%) said bad and 9 (4.97%) said very bad. This implies most of the
respondents have good knowledge about Customer Relationship Management.
Table 5 item 2 elaborates the Banks Customer Relationship Management give better solution for
the customers or not. 157 (86.74%) of the respondent Yes, 15 (8.29%) of them said No and 9
(4.97%) said I am not sure. It implies that most of the customer agreed that Customer Relationship
Management give better solution if it applied properly
Item 3 in the above table 5 shows the relationship between the bank and its customers. 20
(11.05%) said Very good, 40 (22.10) said Good, 58 (32.05) said Medium, 42 (23.20) said Bad and
21 (11.60) said Very bad. Thus, it’s possible to say that Dashen Bank has fair relationship with its
customers, so it needs to be improved.
Item 4 in the above table 5 it holds customers respond about whether Dashen Bank has Customer
Relationship Management or not. Accordingly, out of the total customer respondents 94 (51.94 %)
of the respondent said Yes, 50 (27.62%) of respondents said No and the reaming 37 (20.44%) said
I am not sure. Therefore, findings from this responses majority of the respondent agree Dashen
Bank don’t have Customer Relationship Management system.
31
Table 6 Reasons the Customers Dissatisfied with Customer Relationship
Management Practice of the Bank
Customer Respondent
S.N. Item
Do you think that the Bank’s CRM System helps its
customers to be satisfied and stayed with it?
A. Yes 59 32.59
1
B. No 83 45.86
Total 181 100
If your answer is “No” then, at what area you are not satisfied? 83 100
A. The way the Bank handle customers complaints 49 31.82
B. The Bank does not provide right information 27 17.53
*2
C. The Bank does not deliver better Service 31 20.13
D. The way they keep customers data 41 26.62
E. Other 6 3.90
Total 154 100
* Table 6 in item 2 it is multiple response question
As shown in item 4 table 6 the respondents thought about the Bank Customer Relationship
Management system helps its Customer to be satisfied and stayed with it. 59 (32.59%) of the
respondent said Yes, 83 (45.86%) said No, and 39 (21.55%) respondent said I am not sure. Thus, it’s
possible to say that most of Dashen Bank customers are not satisfied with the Bank Customer
Relationship Management system.
Item 2 in the above table 6 it is multiple response type questions and it holds the number of
respondents who are not satisfied with the Bank system and areas they are not satisfied. 49 (31.82%)
said the way the Bank handle customers complaint, 27 (17.53%) said the Bank does not provide right
information, 31 (20.13%) said the Bank does not deliver bête service, 41 (26.62%) said the way the
Bank keep its customer database and the remaining 6 (3.90%) said they dissatisfied with the Bank’s
ATM and Mobile Banking System. Therefore, nearly everyone of the respondent dissatisfied because
of the way the Bank keep customers’ database. And the remaining
32
Table 7 Major Problem of the Bank Customer Relationship Management System
Customer Respondent
S.N. Item
To what extent are you satisfied with the
implementation of Customer Relationship Management
System?
1 B. High Level 37 20.44
D. Low 44 24.31
Total 181 100
How much you are benefited from the Bank’s Customer
Relationship Management System?
2
D. Low 51 28.18
Total 181 100
How do you evaluate the Dashen Bank Customer
Relationship Management System with other Bank?
B. Good 33 18.23
3
C. Medium 44 24.31
D. Bad 68 37.57
Total 181 100
What do you think the major problem of the Bank
Customer Relationship Management System? 181 100.00
A. Lack of required number of expertise 72 21.43
B. Lack of common understanding of Customer
Relationship Management System 53 15.77
C. Unavailability of clearly stated Customer
*4 Relationship Management Strategy 56 16.67
D. Lack of knowledge and skills of Customer
Relationship Management 65 19.34
E. Lack of training for Customer Relationship
Management employees 81 24.11
F. Others 9 2.68
Total 336 100
* Table 7 in item 4 it is multiple response question
33
Table 7 above explains to what extent the customers are benefited from the Customer Relationship
Management practice of the Bank, and customer’s evaluation on Dashen Bank Customer Relationship
Management practice with other Banks.
In table 7 items1 of the same table it illustrates the satisfaction level of the respondents associating
Customer Relationship Management of the Banks. 24 (13.26%) said very high level, 37 (20.44%)
said High level, 56 (30.94%) said moderate, 44 (24.31%) said Low level and the remaining 20
(11.05%) respondents were satisfied with a very low level. As a result, it’s likely to articulate that
most of Dashen Bank customers are moderately satisfied with the Bank Customer Relationship
Management system.
As table 7 item 2 explain to what extent the customers are benefited from the Bank Customer
Relationship Management. 14 (7.73) of the respondent said they satisfied with very high level, 31
(17.14%) respondent side High level, 63 (34.80%) are moderate, 51 (28.18 %) respondents said Low
level and 22 (12.15%) said low level. This implies that most of the customers of Dashen Bank S.C.
are in moderately benefited from the Bank.
In table 7 item 3 demonstrate customers evaluation about Dashen Bank Customer Relationship
Management with other Bank. 17 (9.39%) said Very good, 33 (18.23%) said Good, 44 (24.31%) said
medium, 68 (37.57%) said Bad and 19 (10.50%) said Very Bad. Thus, most of the respondent have
bad attitude of the Banks Customer Relationship Management compare with other Bank.
Item 4 in the above table 7 it is multiple responses have been obtained and it explain the major
problem of Customer Relationship Management system in the Bank. The number of respondents to
the major problem of Customer Relationship Management System 72 (21.43%) respondents said lack
of required number of expertise, 53 (15.77%) of respondent said lack of common understand of CRM
system, 56 (16.67%) of respondents said unavailability of clearly stated Customer Relationship
Management strategy, 65 (19.34%) of respondent said that lack of knowledge and skills of
employees, 81 (24.11%) respondents said lack of training for Customer Relationship Management
employees and 9 (2.68%) of respondents said the way the Bank handle customers complaints and
ATM are hitch of the Bank . This is therefore; findings show that major problem of Customer
Relationship Management of the Bank are lack of skills and knowledge of employees and lack of
required number of expertise respectively.
34
Interview with Customer Relationship Management Division
As the interview held with the Customer Relationship Management Division the following information
is gathered such as:-
1. The first question raised for the Head was does the Bank has a clear and stated Customer
Relationship Management Strategy? The Division Head replied that in the mean time, the Bank
doesn’t have clear and stated CRM Strategy. However, the Bank tries to have the strategy and
it is on the process by its own expertise. Hopefully we will have the Strategy in the near future.
2. The second question was How Customer Relationship Management System of the Bank
organized? And the Division Head mentioned it is organized as Division under Corporate
Planning and Development Department. The Department has lead by a Manger and two Deputy
Mangers namely, Deputy Manger Corporate Planning and Development Department – Market
Research and Planning and Deputy Manger Corporate Planning and Development Department
Promotion and Customer Relation. Therefore, Customer Relations Division which has a head
and four experts currently is under the Deputy Manger Corporate Planning and Development
Department.
3. The Division Head also pointed about how Customer Relationship Management practiced in
Bank? As a new concept Customer Relation Management is practiced in Dashen Bank just to
bridge between the Bank and its customers. Currently, Customer Relationship Management
activities of the Bank includes.
• Administrating the Banks Website (Amending and updating)
• Collecting different customers complaints though suggestion box and email and forwarding
to the management.
• Conducting Mystery shopping at area Banks.
• Conducting different surveys in relation to customers (Customer opinion, satisfaction, less
assessment and the like
4. To what extent the staff of Customer Relationship Management qualified with the concept of
CRM? And he responded Not at all the in the beginning the staffs are came from different field
of study in addition they didn’t get training regarding to CRM concept.
5. Is there a training program for the staff with regards to CRM? No, but we are asking our Human
Resource Development Division to arrange training for our staffs.
35
6. Is there any compliant handling system in the Bank? Yes, there are ways that customers present
their complaints. For instance; through suggestion box, through telephone, through e-mail,
through post office and they like but most of the time the customer prefer to present their
complaint through suggestion box.
7. If the customers are not satisfied with the service, then to whom they can present their
complaint? The Head explains that the customers they can present their complaints to the area
Bank Manager, to CRM Division and to the Branch Supervisor but most likely they present
their compliant for the Branch supervisor.
8. Do you have a plan to introduce new CRM System? The Division said Yes its currently
understudying
9. What are the factors that affect CRM practice of the Bank?
• Lack of common understanding on concept Customer Relation Management
• Lack of the required number of expertise and skill
• Disintegration between Marketing and Information Technology System
• Unavailability of clearly stated Customer Relationship Management Strategy hinders the
implementation of Customer Relationship Management program as intended.
10. The last question raised for the Division Head was, what effort exerted to build a common
understanding of CRM concept among the staff? Still nothing but continuous and experience
sharing programs should be undertaken.
36
CHAPTER FOUR
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter deals with the summarized high lights of the study, conclusions drown and recommendations
made on the basis of finding.
4.1. SUMMARY
This study intended to assess Customer Relationship Management practice in Dashen Bank S.C. The
quantitative assessment using questionnaire was made with 200 (two hundred) customers. Therefore
findings are summarized as follows:
• Among the respondents 60.22% of them were male while the rest 39.78% were female.
• Age wise most of the responds 62% were between the ages of 31 – 43.
• With regard to educational level, majority of the respondents were Diploma holders they
represent about 34.25%.
• Respondents relationship with the Bank, majority of the respondents 32.04% said they
stayed about 1 - 3 years at the specific Bank.
• Many of the respondents which are 34.25% of them were the users of Current Account.
• Regarding to knowledge of the staff evaluated by the customers, most of the customer 72
(40%) were evaluated the staff have poor knowledge about Customer Relationship
Management.
• Majority of the respondents 57 (31.49%) were dissatisfied the way the Bank handle their
problems.
• Mass of the respondents 60.77% said the Bank need to improve its Customer Relationship
Management.
• Among the respondents 65 (35.91%) of them were rating Dashen Banks Database System as
a poor.
• Most of the respondent answered on this multiple response type of question the major
problem of the Bank are Lack of training for CRM employees and lack of required number
of expertise, in percentage 24.11% and 21.43% respectively.
• Encouragement of Dashen Bank to customers presents their complaint. Majority of the
respondents 77 (20.44%) of them rating low.
37
• Most of the customers 80 (44.20%) present their complaint to the Branch supervisor.
• Majority of the respondent present their compliant through Suggestion Box and through
Telephone, in percentage 39.44% and 22.54% respectively.
• Regarding to the speed of the Bank to answered customers compliant, enormous number of
the customers 49 (27.07%) responded it’s late.
• The relationship between the Banks with its customers like 32.05% of the respondents
replied it average.
• Majority of the respondents 37.57 % evaluate Dashen Bank CRM with other Bank they said
it is poor.
38
4.2. CONCLUSIONS
To assess the Customer Relationship Management Practices in Dashen Bank S.C. data were
collected and distributed to those who have direct relationship with the subject matter (i.e. to the
bank’s customers). Based on the analysis of these data the researcher comes up with the following
conclusions:
• Dashen Bank employees do not have a common understanding with the concept of
Customer Relationship Management. Some perceive Customer Relationship Management
as a responsibility of a given work unit others believe it is the responsibility of all
employees and most others do not have any idea about the Customer Relationship
Management concept.
• Dashen Bank has not a clearly stated Customer Relationship Management strategy that can
help to build long term relationship with its customers and to attract new ones. The
Customer Relationship Management activities are done through Customer Relationship
Management Division headed by a Division Head and four experts. Customer Relationship
Management is mostly assumed as a responsibility of individual unit, such as Information
Technology Department, Marketing Department Public Relations Department and at the
Supervisory Unit. In Dashen Bank. Customer Relationship Management activities that
handled by a single work unit.
• Most of the customers do not know to whom they would tell when dissatisfied. This shows
that the complaint handling procedure of the bank is not clear or not communicated to
stakeholders of the bank. Customer dissatisfaction leads to loss of customers. Researches
show that not all dissatisfied customer complaint. They might simply switch to other banks,
due to this the bank face customer loss.
• The customer satisfaction monitoring system of the Dashen Bank is not satisfying. Most
customers do not know how to complain or to whom they complain. As a result they would
take their own action by terminating to other bank that they may think get better service.
39
• Data shows that most people believe that Customer Relationship Management is a
responsibility of individual unit, section or department. Kristin Anderson and Carol Kerr in
their book Customer Relationship Management wrote if Customer Relationship
Management is left to an individual or an individual unit, Customer Relationship
Management is at risk. Therefore, Customer Relationship Management should not let to an
individual unit. This does not mean that Customer Relationship Management cannot be
structured and organized as a section or department, but the responsibility of maintaining
customer relationship should be the entire staff including the Top Management and
operational employees.
• Findings also show that Customer Relationship Management benefits both customers and
the banks. Customers benefited by gaining quality service that minimizes their cost and
time. If Customer Relationship Management is effectively utilized service quality
improved and customers kept satisfied. On the other hand the bank benefited from
Customer Relationship Management by assuring long term relationship with satisfied
customers. If customers become satisfied they remain loyal to that bank. This will have a
positive impact on profit.
• The link between Customer Relationship Management and Information Communication

Technology is very weak. Customer Relationship Management with applying the necessary
information communication technology enhances customer service quality and satisfaction.
If customers could gate service with the help of ICT, their level of satisfaction increases.
40
4.3. RECOMMENDATIONS
Based on the findings listed in the above section, on the area of Customer Relationship
Management practices the researcher believe that Dashen Bank shall take consideration for the
effort and take the necessary measures in order of its Customer Relationship Management practice
to correct its deviation and to narrow the gap between what they are doing and what they should
intend to do. Herewith recommend the following:
• Train employees; create awareness and understanding about Customer Relationship

Management within the bank. In addition to that, organize to customize service; train
employees who have immediate contact (moment of the truth) with customers.
• Develop a clear Customer Relationship Management strategy that is compatible with the
general organizational strategy.
• Facilitate a clear customer complaint handling procedure, initiate to welcome complaints,
rather than defending them.
• Take the responsibility of CRM as a whole and perform in an integrated way in accordance
with the banks CRM strategies.
• Facilitate for the provision of quality customer service that enhances customer satisfaction
in all the dimensions of service quality.
• Collaborating the Marketing and Information Technology Departments in addition the
employees of Customer Relationship Management should have knowledge of both fields for
best Customer Relationship Management implementation.
• Recruit professional employees who have ICT and CRM knowledge.
• Timely revise and update CRM, Customer database, complaint handling procedures and
conflict resolving systems.
41
BIBLIOGRAPHY
Anderson, K. and Kerr, C. (2002). Customer Relationship Management New Delhi: Tata
MC Graw-Hill
Anderson, and Vincze, (2002), Strategic Marketing Management. Bosten, Haoughton

Miltlin Company
Balaji, B. (2002). Service Marketing and Management. New Delhi Ram Nagar
Buttle, F. (2009). Customer Relationship Management Concept and Technology. India:

Elsevier India Pvt
Christopher, M., Payne, A., & Ballantyne, D. (1991) Relationship Marketing Bringing
Quality, Customer Service and Marketing Together. Oxford: Butterworth
Heinemann.
Denton, Keith (1998). How to Give Service to Your Customer. New Delhi: Universal
Book Store
Francis Buttle (2009).Customer Relationship Management, Concepts and

Technologies, Second Edition, India,
Harell, D. and Frazier, L. (1999). Marketing Management: Connecting with Customers.

New Delhi Prentice Hall, Upper Saddle Rive
Huge Waston (2010), Business Intelligence Journal, Georgia
Lisan Poulsen (2011) Journal of Marketing Management, Georgia
Lovelock, C. and Wirtz, J. (2005). Service Marketing. India Boba Barkha Nath.
Kotler, P. (2002). Marketing Management. New Delhi: Prentice. Hall of India Pvt. Ltd
Malhotra, K. (2006). Marketing Research and Applied Orientation, New Delhi: Hall of
India Pvt. Ltd
Manga,G. and Anand, S. (2003). Marketing Management, New Delhi: Deep and Deep
Publication Pvt. Ltd
Preeti, O. (2002). Customer Relation, New Delhi Sarup and Sons
Richard, D. (2004). The Customer Response Management, New Delhi: Tata MC Grow –
Hill Edition
Kotler, P. and Armstrong, G. (2006) Principles of Marketing. New Delhi: Prentice-Hall of

India Pvt. Ltd
Kotler, P. and Lane, K. (2009). Marketing Management. New Delhi PHL earning Pvt
Ltd
Martin Gneiser (2010), Customer Relationship Management, Germany
Mudle, P. and Pirrie A. (2006). Service Marketing. Great Britain Heniman Publication
Kumar, A. Meenakshi, N. (2006). Marketing Management. Delhi: Vikas Publication

House Pvt. Ltd
Aheame and Rapp, 2012:119
Beerli, Martin and Quintana 2004
Chalmeta 2006:116
Christopher Zerres, Customer Relationship Management, 2008:5
Dashen Bank s.c. company Brochures
Dashen Bank s.c. Annual Report 2012/2013, Addis Ababa
Harell D. and Frazier L. 1999.67
Huge Woston, Business Inelegancy Journal ,Georgia, 2010:200
Kristin Anderson and Caroll Kerr, Customer Relationship Management, McGraw-Hill
Edition New Delhi, India, 2002. 2
Lasser and Mandel, 2008:20
Lisa Poulsen, Journal of Marketing Management, 2011:85
Lovelock and Wirtz 2005:405
Malhotra 2006 :339
Martin Gneiser, Customer Relationship Management, Germay, 2010:52
M.Sah, 2007:33
Michael Aheame and Adam Rapp, Customer Relationship Management, Germany,
2012
Nicholas Poulos, Journal of Smart Customer Service, 2006:118
Stinivasan and Moorman (2005:196)
Stephan King, Customer Relationship Management, 2008:424
Raji Srinivasan and Christine Moorman, Journal of Marketing, 2005:196
Roger Barana and others 2014:5
Payne and Flow 2004
Philip Kotler, Customer Relationship Management, Published by John Wiley & Sons.,
Hoboken, New Jersey,2003
26
Appendix A
St. Mary’s University
Faculty of Business
Department of Marketing Management
Questionnaire to be Filled by Dashen Bank Customers
Dear respondent,
This Questionnaire is prepared by the 4th year student of St. Mary’s University for the partial
fulfillment of Bachelor of Arts Degree in Marketing Management. This questionnaire is prepared
to assess the overall “Customer Relationship Management” practice of Dashen Bank and to collect
data which can assist to prepare a senior essay.
The validity of your response has contribution for success of my senior essay due to this reason I
would like to ask with due respect to give me the right response. I assure you that your responses
are confidential and responses are used only for my research paper purpose.
Thank you for your cooperation
Instruction
- The respondent should give their response making the box using “” sign
- The respondents are not supposed to disclose their names
- If the respondents are interested to give personal response they can use the
blank space provides at the end.
Part I. General characteristics of the respondents
1. Sex?
A. Male B. Female
2. Age?
A. 18-30 Year B. 31-43 Year C. 44-56 Year D. Above 56 Years
3. Educational background?
A. Secondary Education D. Degree
B. Certificate E. Masters and above
C. Diploma
4. For how long you are staying with the Bank?
A. Less than 1 year B. 1 – 3 years C. 4 – 6 years D. Above 6 years
Part II. Questions directly related to the study
1. Which service do you use from Dashen Bank?

A. International Bank Service D. Saving Account
B. Hawala E. Others please, specify _______________
C. Current Account
2. How do you evaluate your understanding about Customer Relationship Management?

A. Very good B. Good C. Moderate D. Bad E. Very Bad
3. How do you see the relationship between the Bank and its customers?
4. Do you think that Dashen Bank has Customer Relationship Management System?
A. Yes B. No C. I am not Sure
5. Do you think that the Bank’s Customer Relationship Management System helps its customers
to be satisfied and stayed with it?
6. If your answer for question number 5 is “No” then, at what area you are not satisfied?
A. The way the Bank handle customers complaints
B. The Bank does not provide right information
C. The Bank does not delivery better service
D. The way they keep customers data
E. Others please, specify ________________________________
7. To what extent are you satisfied with the implementation of Customer Relationship
Management System?
A. Very high level B. High C. Moderate D. Low E. Very Low
8. How much you are benefited from the Bank’s Customer Relationship Management System?
A. Very high level B. High C. Moderate D. Low E. Very Low
9. How do you evaluate the Dashen Bank Customer Relationship Management System with
other Banks?
10. Do you think the Bank needs to improve its Customer Relationship Management System?
11. If your answer is “Yes” for question number 10 which area will be improved?
A. The Bank customer handling procedure
B. The services the Bank deliver
C. The Bank database system
D. The Bank complaint handling system
E. Others please, specify ________________________________
12. How do you evaluate the Knowledge of the staff on Customer Relationship Management?
A. Very Good B. Good C. Medium D. Bad E. Very Bad
13. How do you rate Dashen Bank’s Customer Datatbase System?

A. Very Good B. Good C. Medium D. Bad E. Very Bad
14. What do you think the major problem of the Bank Customer Relationship Management System?
A. Lack of required number of expertise
B. Lack of common understanding of Customer Relationship Management System
C. Unavailability of clearly stated Customer Relationship Management Strategy
D. Lack of knowledge and skills of Customer Relationship Management employees
E. Lack of training for Customer Relationship Management employees
F. Others please, specify ______________________________
15. How do you rate the encouragement of Dashen Bank customers to complain?
A. Very high level B. High C. Moderate D. Low E. Very low
16. Do you think Customer Relationship Management practice give better solution for customers
complain?
17. To whom you present your complaints?
A. To the Area Bank’s Manager C. To the Bank’s Supervisors
B. To Customer Relationship Management Division
18. If your answer for question number 17 is “To the Customer Relationship Management
Division”, how do you present your complaints?
A. Personally D. Through Suggestion Box
B. Through Post office E. Through E-mail
C. Through Telephone F. Others please, specify________________
19. To what extent are you satisfied with the complaints handling procedures?
20. How do you evaluate your satisfaction with the way the employees handle your problem?
21. How do you rate the speed of the Bank to answer customers complain?
A. Very Fast B. Fast C. Moderate D. Slow E. Very Slow
22. Any constructive comment you would like for the Bank to improve it Customer
Relationship Management System you can present?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Thank You Once Again!

Appendix B
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Appendix C
St. Mary’s University
Faculty of Business
Department of Marketing Management
Interview Checklist for Head CRM Division of Dashen Bank
- This interview is designed for the purpose of a research being conducted to identify the
Problems and Practices of CRM; so as to forward the necessary recommendations to the
attention of Top Management of how to treat those practices and minimize related
problems. Thus, your kind cooperation in answering the questions will help the
researcher to make analysis of the data and come up with concrete conclusion, because
your frank and unreserved reply would contribute a lot.
- The researcher would like to thank you in advance for your cooperation.
1. Does the Bank have a clear and stated CRM strategy?

2. How CRM system of the Bank is organized?
3. How CRM Practiced in Dashen Bank?
4. To what extent the staff of CRM qualified with the concept of CRM?
5. Is there a training program for the staff with regards to CRM?
6. Is there any compliant handing system in the Bank?
7. If customers are not satisfied with the service, then to whom they can present their
complaint?
8. Do you have a plan to introduce new CRM system?
9. What are the major factors that affect CRM practice of the Bank?
10. What effort exerted to build a common understanding of CRM concept among the
staff?
DECLARATION
I, the undersigned, declare that this senior essay is my original work, prepared under the guidance
of Mr. Tadesse Hailu. All sources of material used for the manuscript have been duly
acknowledged.
Name Seble Moges

Signature ___________________
Place of Submission St. Mary’s University Department of Marketing Management
Date of Submission ___________________
ADVISOR’S DECLARATION
This paper has been submitted for examination with my approval as the University advisor
Name Mr. Tadesse Hailu
Signature ___________________
Date ___________________

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ST.

AN ASSESSMENT OF CUSTOMER RELATIONSHIP MANAGEMENT

A SENIOR ESSAY SUBMITTED TO

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

AN ASSESSMENT OF CUSTOMER RELATIONSHIP MANAGEMENT

APPROVED BY THE COMMITTEE OF EXAMINERS

CHAIR PERSON SIGNATURE

INTERNAL EXAMINER SIGNATURE

EXTERNAL EXAMINER SIGNATURE

Any endeavor of this kind could be successful only when it is

I would like to thank my deepest gratitude to Ato Alemayehu Kebede

Thank you All!!!

Table One General Characteristics of the Respondents 24

Table Two Dashen Bank’s Employees Performance 26

Table Three Dashen Bank’s CRM System 27

Table Four Customers Complaint Handling Procedures 28

Table Five Dashen Banks CRM Practice 30

Table Six Reasons the Customers Dissatisfied with Dashen Banks 32

Customer Relationship Management Practice

Table Seven Major Problem of the Bank Customer Relationship 33

CRM Customer Relationship Management

1.1. BACKGROUND OF THE STUDY

Customer Relationship Management is comprehensive approach for creating, maintaining and

1.2. STATEMENT OF THE PROBLEM

Customer Relationship Management (CRM) is the process of carefully managing detail

1.3. RESEARCH QUESTIONS

1.4.2. SPECIFIC OBJECTIVE

1.5. SIGNIFICANCE OF THE STUDY

1.6. DELIMITATION OF THE STUDY

1.7. DEFINITION OF TERMS

Customer Relationship Management: It is the process of building and maintains profitable

1.8. RESEARCH DESIGN AND METHODOLOGY

1.8.3. Types of Data Collected

1.8.4. Method of Data Collection

1.8.5. Data analysis Method

- Some customers were unwilling to provide necessary information

1.10. ORGANIZATION OF THE STUDY

2.1. AN OVERVIEW OF CUSOMTER RELATIONSHIP MANGMENT

2.1.1 DEFINITION OF CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management (CRM) can improve a company’s customer service

• Increasing acquisition of new customers

- Customer satisfaction and loyalty

2.1.3. OBJECTIVES OF CUSTOMER RELATIONSHIP MANAGEMENT

2.1.4. PRACTICES OF CUSTOMER RELATIONSHIP MANAGEMENT

2.1.5. CUSTOMER RELATIONSHIP MANAGEMENT IN RETAIL BANKING

According to Poulos (2006:118) Customer Relationship Management (CRM) is a sound business

• Providing better customer service

• Consistent and cost effective service

2.1.6. CUSTOMER RELATIONSHIP MANAGEMENT STRATEGY STARTING

• One, Creating a CRM Strategy for the overall organization; or

1. Picking the Players:

2. Preparing for First Meeting

3. CRM Strategy Certain Meetings

4. Identify Potential Strategies

A Basic CRM Model

Data Data Data Information Information

Fig. 1.A Basic CRM Model

2.1.8. Potential CRM Implementations Problems

According to King (2008:424 ) Customer Relationship Management (CRM) failure is derived